Setback for Blair’s Anti-Brexit Diehards As UK Posts Strongest Growth For A Year

The United Kingdom has posted its fastest quarterly growth for a year, beating expectations and defying the gloomy forecasts made by Remain campaigners and establishment institutions before the country’s referendum on membership of the European Union (EU). The figures come as a blow to diehard Remain campaigners led by Tony Blair, who said the public could “change their minds” about Brexit following “real damage” to the British economy.

Before the referendum, papers published by the George Osborne-led Treasury claimed “a vote to leave would represent an immediate and profound shock to our economy. That shock would push our economy into a recession and lead to an increase in unemployment”.

Mark Carney, the former Goldman Sachs employee who heads Britain’s central bank, was broadly supportive, alleging that the consequences of a Leave vote “could possibly include a technical recession”.

Reports indicate the average growth forecast has tripled since the vote, however, with today’s quarterly upgrade from 0.6 per cent to 0.7 per cent driven by strong net trade.

UK Q4 GDP growth revised up to 0.7%q/q off the back of a big contribution from net trade. Consumers chipped in too. pic.twitter.com/YG8CGnoVlb

Industrial output, initially thought to have been flat, was revised up to 0.3 per cent. Construction output was also revised up, to 0.2 per cent, while services sector expansion was estimated at by 0.8 per cent.

The pound hit a two-month high against the euro, which has now fallen its lowest level against a basket of currencies since November 2016, in advance of the new figures being published.

The developments will be unwelcome news for former prime minister Tony Blair, who courted controversy last week when he assumed leadership of the so-called “Remain Resistance”.

Blair called on europhile campaigners to “rise up” against Brexit, claiming that the people’s decision “was based on imperfect knowledge”.

Overall, the ONS estimate for growth in 2016 has been revised slightly down, from 2 per cent to 1.8 per cent, but this has been attributed to the sector-specific issue of weaker than expected North Sea oil and gas production.

This in itself is an issue for Remain campaigners in the devoutly europhile Scottish National Party (SNP), who based the financial case for Scotland leaving the United Kingdom on estimated oil revenues of £8bn in 2014.